Digital Mindset, Organizational Culture, and Sustainable Employee Performance: The Role of Employee Engagement
DOI:
https://doi.org/10.70550/joseb.v3i3.705Keywords:
Digital Mindset, Organizational Culture, Employee Engagement, Sustainable Employee Performance, SEM-PLSAbstract
Objectives: This study examines the effects of digital mindset and organizational culture on sustainable employee performance, with employee engagement tested as a mediating variable among Bank Indonesia employees.
Methodology: A quantitative, cross-sectional explanatory survey of all 200 employees in six Bank Indonesia work units produced 180 valid responses. The reflective first-order model was analyzed with SEM-PLS using SmartPLS 4 and one-tailed bootstrapping with 5,000 subsamples, with 36 initial indicators reduced to 28 after measurement-model evaluation.
Finding: Digital mindset positively and significantly affected sustainable employee performance and employee engagement. Organizational culture also positively and significantly affected both outcomes. Employee engagement had a positive but nonsignificant effect on sustainable employee performance and did not mediate either the digital mindset or organizational culture relationship with sustainable employee performance.
Conclusion: Strengthening digital mindset and organizational culture provides the clearer direct route to sustainable performance, while engagement initiatives require supportive work design, adequate resources, workload management, and employee well-being to produce a stronger performance contribution.
Downloads
References
Ahmad, R., Nawaz, M. R., Ishaq, M. I., Khan, M. M., & Ashraf, H. A. (2023). Social exchange theory: Systematic review and future directions. Frontiers in Psychology, 13, 1015921. https://doi.org/10.3389/fpsyg.2022.1015921
Alam, M. J., Shariat Ullah, M., Islam, M., & Chowdhury, T. A. (2024). Human resource management practices and employee engagement: the moderating effect of supervisory role. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2318802
Bank Indonesia. (n.d.). Sejarah Bank Indonesia. Lembaran Negara Republik Indonesia Tahun 1953 Nomor 40. Retrieved July 28, 2026, from https://www.bi.go.id/id/tentang-bi/sejarah-bi/default.aspx
Blau, P. M. (1964). Exchange and power in social life. Wiley.
Bui, D. H., & Le, A. T. T. (2023). Improving employee engagement through organizational culture in the travel industry: Perspective from a developing country during Covid-19 pandemic. Cogent Business & Management, 10(2). https://doi.org/10.1080/23311975.2023.2232589
Chomać-Pierzecka, E., Dyrka, S., Kokiel, A., & Urbańczyk, E. (2024). Sustainable HR and Employee Psychological Well-Being in Shaping the Performance of a Business. Sustainability, 16(24), 10913. https://doi.org/10.3390/su162410913
Creswell, J. W., & Creswell, J. D. (2023). Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (6th ed.). SAGE Publications. https://collegepublishing.sagepub.com/products/research-design-6-270550
Cropanzano, R., & Mitchell, M. S. (2005). Social Exchange Theory: An Interdisciplinary Review. Journal of Management, 31(6), 874–900. https://doi.org/10.1177/0149206305279602
David, D., & Lahindah, L. (2025). Agile Leadership and Digital Mindset: Their Impact on Employee Performance through Employee Engagement. Amkop Management Accounting Review (AMAR), 5(1), 182–207. https://doi.org/10.37531/amar.v5i1.2516
Denison, D. R., & Mishra, A. K. (1995). Toward a Theory of Organizational Culture and Effectiveness. Organization Science, 6(2), 204–223. https://doi.org/10.1287/orsc.6.2.204
Fu, F., Zha, W., & Zhou, Q. (2023). The Impact of Enterprise Digital Capability on Employee Sustainable Performance : From the Perspective of Employee Learning.
Goldmann, P., Schäfer, B., & Altendorfer, C. (2025). Development and validation of the digital mindset scale. Journal of Business Research, 199, 115554. https://doi.org/10.1016/j.jbusres.2025.115554
Hair, J. F., Hult, G. T. M., Ringle, C. M., & Sarstedt, M. (2022). A Primer on Partial Least Squares Structural Equation Modeling (PLS-SEM) (3rd ed.). SAGE Publications.
Hasan, H. (2023). Effect of organizational culture on organizational learning , employee engagement , and employee performance : Study of banking employees in Indonesia. https://doi.org/10.21511/ppm.21(3).2023.38
Hendri, M. I. (2025). Exploring factors shaping sustainable employee performance: A systematic literature review. Social Sciences & Humanities Open, 11, 101586. https://doi.org/10.1016/j.ssaho.2025.101586
Hildebrandt, Y., & Beimborn, D. (2024). Measuring the Digital Mindset: Development and Validation of a Multidimensional Scale. ACM SIGMIS Database: The DATABASE for Advances in Information Systems, 55(4), 80–116. https://doi.org/10.1145/3701613.3701618
Hizam, S. M., Akter, H., Sentosa, I., Ahmed, W., Masrek, M. N., & Ali, J. (2023). Predicting Workforce Engagement towards Digital Transformation through a Multi-Analytical Approach. Sustainability, 15(8), 6835. https://doi.org/10.3390/su15086835
Ji, T., Jonge, J. De, & Peeters, M. C. W. (2021). Employee Sustainable Performance ( E-SuPer ): Theoretical Conceptualization , Scale Development , and Psychometric Properties.
Jonge, J. de, & Peeters, M. C. W. (2025). At Work with Sustainable Well-Being and Sustainable Performance: Testing the DISC Model Among Office Workers. Sustainability (Switzerland), 17(2). https://doi.org/10.3390/su17020643
José, D., Palma-Moreira, A., & Au-Yong-Oliveira, M. (2025). Organizational Culture and Perceived Performance: Mediation of Perceived Organizational Support and Moderation of Motivation. Administrative Sciences, 15(8), 307. https://doi.org/10.3390/admsci15080307
Li, Z., Yang, C., Yang, Z., & Zhao, Y. (2024). The impact of middle managers’ digital leadership on employee work engagement. Frontiers in Psychology, 15(March), 1–13. https://doi.org/10.3389/fpsyg.2024.1368442
Lu, Y., Zhang, M. M., Yang, M. M., & Wang, Y. (2022). Sustainable human resource management practices, employee resilience, and employee outcomes: Toward common good values. Human Resource Management, 62(3), 331–353. https://doi.org/10.1002/hrm.22153
Lukito, D., Susanti, M., Susanto, Y., Judijanto, L., & Ali, M. (2024). Asia Paci fi c Management Review Determinants of sustainable employee performance : A study of family businesses in Indonesia. Asia Pacific Management Review, (xxxx), 100340. https://doi.org/10.1016/j.apmrv.2024.12.004
Nations, U. (2015). Transforming our world: The 2030 Agenda for Sustainable Development. United Nations. https://sdgs.un.org/2030agenda
Peretz, H. (2024). Sustainable Human Resource Management and Employees’ Performance: The Impact of National Culture. Sustainability, 16(17), 7281. https://doi.org/10.3390/su16177281
Pham, V. K., Vu, T. N. Q., Phan, T. T., & Nguyen, N. A. (2024). The Impact of Organizational Culture on Employee Performance: A Case Study at Foreign-Invested Logistics Service Enterprises Approaching Sustainability Development. Sustainability, 16(15), 6366. https://doi.org/10.3390/su16156366
Pratiwi, L. A., & Nawangsari, L. C. (2021). Organizational Citizenship Behavior while mediating Self-Efficacy, Servant Leadership and Organization Culture on Employee Performance. European Journal of Business and Management Research, 6(1), 225–231. https://doi.org/10.24018/ejbmr.2021.6.1.713
Rasool, S. F., Mohelska, H., Rehman, F. U., Raza, H., & Asghar, M. Z. (2025). Exploring the Nexus Between a Supportive Workplace Environment, Employee Engagement, and Employee Performance in the Kingdom of Saudi Arabia. Administrative Sciences, 15(6), 230. https://doi.org/10.3390/admsci15060230
Saimin, Salim, N., Nurhayati, M., & Nawangsari, L. C. (2024). Factors influencing employee performance: Job engagement as a mediating variable. Journal of Management and Economic Studies, 6(2), 168–179. https://doi.org/10.26677/TR1010.2024.1416
Saputro, M. R., & Nawangsari, L. C. (2025). Enhancing Sustainable Practices in Hospitality: The Role of Green Leadership, Organizational Culture, and Training in Shaping Employee Behavior through Commitment. Asian Journal of Applied Business and Management, 4(3), 1345–1362. https://doi.org/10.55927/ajabm.v4i3.447
Schaufeli, W. B., Bakker, A. B., & Salanova, M. (2006). The measurement of work engagement with a short questionnaire: A cross-national study. Educational and Psychological Measurement, 66(4), 701–716. https://doi.org/10.1177/0013164405282471
Syafiq Maricar, M., & Suprapto, S. (2024). The Influence of Employee Cross-Cultural and Motivation on Employee Performance Through Corporate Ethics as a Mediating Variable in DPU Bank Indonesia. Dinasti International Journal of Education Management And Social Science, 6(1), 315–328. https://doi.org/10.38035/dijemss.v6i1.3199
Tadesse Bogale, A., & Debela, K. L. (2024). Organizational culture: a systematic review. Cogent Business & Management, 11(1). https://doi.org/10.1080/23311975.2024.2340129
Trenerry, B., Chng, S., Wang, Y., Suhaila, Z. S., Lim, S. S., Lu, H. Y., & Oh, P. H. (2021). Preparing Workplaces for Digital Transformation: An Integrative Review and Framework of Multi-Level Factors. Frontiers in Psychology, 12. https://doi.org/10.3389/fpsyg.2021.620766
Zhan, X., & Xie, S. (2025). Linking workplace digitalization to work engagement: evidence from China public sector organizations. Frontiers in Psychology, 16(January), 1–11. https://doi.org/10.3389/fpsyg.2025.1455250
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Journal of Sustainable Economic and Business
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
